Slide 1: Fiscal Q4 and 2023 Earnings Presentation
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Ciena Corporation Fiscal Q4 and 2023 Earnings Presentation Period ended October 28, 2023 December 7, 2023
Slide 2: Forward-looking statements and non-GAAP measures
© Ciena Corporation 2023. All rights reserved. Proprietary Information.2 Forward-looking statements and non-GAAP measures You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission (SEC) filings, recent news, financia
Slide 3: Table of Contents
© Ciena Corporation 2023. All rights reserved. Proprietary Information.3 Table of Contents 1. Overview and recent achievements 2. Market context and Ciena's portfolio 3. Fiscal year 2023 financial performance 4. Fiscal Q4 2023 financial performance 5. Appendix
Slide 4: Overview and Recent Achievements
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Overview and Recent Achievements
Slide 5: Ciena is an industry-leading global networking systems, services, and software company
© Ciena Corporation 2023. All rights reserved. Proprietary Information.5 Ciena is an industry-leading global networking systems, services, and software company ….. Leading technology and innovation … with a strong track record of creating shareholder value Diversification and scale of business Leade
Slide 6: FY 2023 key achievements
© Ciena Corporation 2023. All rights reserved. Proprietary Information.6 FY 2023 key achievements • Announced WaveLogic™ 6, our next generation of coherent optics and the industry's first to support up to 1.6Tbps single-carrier wavelengths • Delivering industry-leading coherent technology with WaveL
Slide 7: Market context and Ciena's portfolio
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Market context and Ciena's portfolio
Slide 8: Mega-trends driving strong network traffic growth
© Ciena Corporation 2023. All rights reserved. Proprietary Information.8 Mega-trends driving strong network traffic growth Digital Transformation & Automation AI & Cloud Data Center Mobility & 5G IoT and Connected Objects Virtual & Hybrid Lifestyles
Slide 9: The Adaptive Network enables customers to create flexible, open, and sustainable networks
© Ciena Corporation 2023. All rights reserved. Proprietary Information.9 The Adaptive Network enables customers to create flexible, open, and sustainable networks
Slide 10: Our market leadership
© Ciena Corporation 2023. All rights reserved. Proprietary Information.10 Our market leadership Optical Transport Report, 3Q23Optical Networking Report, 3Q23 Service Provider Switching & Routing Report, 3Q23 Transport Hardware and Markets Report, 3Q23 Transport Applications Report, 2Q23 #1 Globally
Slide 11: Next-Gen Metro and Edge is a strategic growth segment
© Ciena Corporation 2023. All rights reserved. Proprietary Information.11 Next-Gen Metro and Edge is a strategic growth segment Fiber Broadband Access is a key driver in this space
Slide 12: Fiscal full year 2023 results
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Fiscal full year 2023 results
Slide 13: Fiscal FY 2023 comparative financial highlights
© Ciena Corporation 2023. All rights reserved. Proprietary Information.13 Fiscal FY 2023 comparative financial highlights * Reconciliations of these non-GAAP measures to our GAAP results are included in the Appendix and in the press release for the relative period. FY 2023 FY 2022 Revenue $4,386.5M
Slide 14: Fiscal Q4 2023 results
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Q4 FY 2023 results
Slide 15: Fiscal Q4 2023 key highlights
© Ciena Corporation 2023. All rights reserved. Proprietary Information.15 Q4 FY 2023 key highlights ▪ Non-telco represented a record high 52% of total revenue • Direct Cloud Provider revenue more than doubled YoY ▪ Routing and Switching revenue increased 25% YoY ▪ APAC revenue increased 46% YoY ▪ EM
Slide 16: Q4 comparative financial highlights
© Ciena Corporation 2023. All rights reserved. Proprietary Information.16 Q4 FY 2023 comparative financial highlights * Reconciliations of these non-GAAP measures to our GAAP results are included in the Appendix and in the press release for the relative period. Q4 FY 2023 Q4 FY 2022 Revenue $1,129.5
Slide 17: Comparative operating metrics
© Ciena Corporation 2023. All rights reserved. Proprietary Information.17 Q4 FY 2023 comparative operating metrics Q4 FY 2023 Q4 FY 2022 Cash and investments $1.25B $1.18B Cash from (used in) operations $196M $(15)M DSO 92.0 100.0 Inventory Turns 2.0 1.9 Gross Leverage 2.44x 2.25x Net Cash (Debt) $(
Slide 18: Revenue by segment
© Ciena Corporation 2023. All rights reserved. Proprietary Information.18 Revenue by segment (Amounts in millions) Q4 FY 2023 Q4 FY 2022 Revenue %** Revenue %** Networking Platforms Optical Networking $748.0 66.2 $649.9 66.9 Routing and Switching 128.9 11.4 102.8 10.6 Total Networking Platforms 876.
Slide 19: Record revenue derived from non-telco customers
© Ciena Corporation 2023. All rights reserved. Proprietary Information.19 Record revenue derived from non-telco customers
Slide 20: Revenue by geographic region
© Ciena Corporation 2023. All rights reserved. Proprietary Information.20 Revenue by geographic region 12% 13% 16% 14% 15% 14% 74% 72% 70% 70% 15% 15% 14% 15% 71%
Slide 21: Appendix
© Ciena Corporation 2023. All rights reserved. Proprietary Information. Q4 FY 2023 appendix
Slide 22: Gross Profit Reconciliation
© Ciena Corporation 2023. All rights reserved. Proprietary Information.22 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 Q4 FY 2022 GAAP gross profit $486,281 $448,941 $487,683 $455,946 $433,597 Share-based compensation-products 1,194 1,118 1,155 1,051 907 Share-based compensation-services 2,827 2,687
Slide 23: Operating Expense and Income from Operations Reconciliation
© Ciena Corporation 2023. All rights reserved. Proprietary Information.23 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 Q4 FY 2022 GAAP operating expense $394,979 $370,727 $384,870 $370,730 $356,329 Share-based compensation-research and development 11,412 10,954 10,731 9,234 8,507 Share-based compensa
Slide 24: Adjusted Net Income Reconciliation
© Ciena Corporation 2023. All rights reserved. Proprietary Information.24 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 Q4 FY 2022 GAAP net income $91,199 $29,733 $57,654 $76,241 $57,645 Exclude GAAP provision (benefit) for income taxes (20,681) 34,608 29,821 25,078 7,735 Income before income taxes 70
Slide 25: EBITDA Reconciliation
© Ciena Corporation 2023. All rights reserved. Proprietary Information.25 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 Q4 FY 2022 Net income (GAAP) $91,199 $29,733 $57,654 $76,241 $57,645 Add: Interest expense 24,207 24,060 23,889